1992 IRS News Releases

News Releases are issued by the IRS
whenever there is information of importance that needs to be released
to the public or practitioner community.
All 1992 releases are included here except those pertaining to IRS personnel changes

The numbering system identifies the year and the number of the News Release.
Fact Sheets are identified with filenames beginning "FS-92'" followed
by the number of the fact sheet.

Over six million employers will soon receive the premier issue of the SSA/IRS REPORTER newsletter. A joint venture of the Internal Revenue Service (IRS) and the Social Security Administration (SSA), the newsletter is designed to keep employers up to date on changes to their tax and employee wage obligations.

The Internal Revenue Service today announced that interest rates for the calendar quarter beginning January 1, 1993, will remain at six percent for overpayments, seven percent for underpayments, and nine percent for large corporate underpayments.

Corporations filed approximately 3.6 million federal income tax returns for 1989, an increase of 1.8 percent over 1988, according to Statistics of Income--1989, Corporation Income Tax Returns, available now. Total assets reached $17.6 trillion, and total receipts reached $10.9 trillion, each increasing by 6.5 percent over 1988.

The Internal Revenue Service and the National Treasury Employees Union have agreed to move to a higher level of employee involvement and more sophisticated labor-management relationship by working jointly to make the IRS a Total Quality Organization.

The Internal Revenue Service Information Reporting Advisory Committee will meet Wednesday and Thursday, December 2 and 3, at the IRS National Office, 1111 Constitution Avenue N.W., Room 3313, Washington, D.C. The meetings will begin at 10:00 a.m. both days, ending about mid-day on the 3rd.

The average individual income tax for 1991, for returns filed through April 1992, was $3,691 compared to $3,569 for 1990. The Fall 1992 issue of the IRS publication Statistics of Income, available now, reports that adjusted gross income increased 6 percent to $3.2 trillion, while tax as a percentage of AGI decreased slightly, from 12.5 to 12.4 percent. The number of returns with itemized deductions increased over 7 percent to 30.8 million and total itemized deductions increased 9.5 percent to $412.5 billion. The number of returns filed electronically increased 25 percent to 10.9 million.

Taxpayers who claim an itemized deduction for the interest they pay on their adjustable rate mortgages (ARMs) and receive a refund from their mortgage company in a following year will include the refund as income on their tax returns for that year, the IRS said in a revenue ruling today.

United States taxpayers filed 2.4 million more federal tax returns for tax year 1989 than for 1988. Adjusted gross income rose by more than $173 billion, 5.6 percent, over the same period, with taxable interest received and partnership and S corporation income showing the largest increases. The sum of income tax after credits and the alternative minimum tax rose 4.9 percent. These and other statistical data appear in IRS' annual report, "Statistics of Income--1989, Individual Income Tax Returns" (Publication 1304), available now.

Nearly six million employers will find rules for depositing federal taxes easier under new regulations the Internal Revenue Service finalized today. The new rules take effect January 1, 1993, but include a one-year transition period to allow employers to change their payroll systems.

Organizations formed to aid victims of Hurricane Andrew will have their applications for tax exemption processed quickly by the Internal Revenue Service. The IRS said that these organizations should clearly mark "Hurricane Andrew" on the top of the application for tax exemption.

The Internal Revenue Service today announced that interest rates for the calendar quarter beginning October 1, 1992, will decrease to six percent for overpayments, seven percent for underpayments, and nine percent for large corporate underpayments.

Internal Revenue Service today granted relief to taxpayers in the Florida counties of Dade, Broward and Monroe and the Louisiana parish of Terre Bonne who are unable to meet their federal tax obligations because of Hurricane Andrew.

The Internal Revenue Service Commissioner's Advisory Group will meet at the National Office; 1111 Constitution Avenue, N.W.; Washington, D.C.; on Wednesday, September 2, 1992. The meeting in Room 3313 will begin at 8:30 a.m.

The Tax Reform Act of 1986 affected individual partners more than partnerships themselves. The Summer 1992 issue of the IRS publication Statistics of Income, available now, reports that individuals' partnership losses claimed for the first three years under the Act declined from $61.2 billion to $38.4 billion, reflecting in large part the Act's curtailment of tax shelter activity. Partnership losses in real estate and oil and gas extraction, two industries associated with tax shelters, declined only from $57.9 billion to $56.8 billion.

Each year impersonators swindle taxpayers out of thousands of dollars by posing as Internal Revenue Service employees. These impersonators gain access to confidential records through illegal schemes. Elderly people, widows, widowers, minorities and small businesses are often the targets of these impersonators.

The Internal Revenue Service today awarded a contract to Aspect Telecommunications Corporation, of San Jose, Calif., to replace equipment used to route the large volume of telephone calls into IRS taxpayer service and automated collection centers.

Pacific Bell, of San Francisco, today was awarded a contract that will provide telecommunications equipment and services for Internal Revenue Service and other Department of Treasury offices in California and Nevada for up to 10 years.

Good afternoon. I am truly pleased to be here to meet with the AICPA. Your organization has worked long and hard with the IRS for many years. I am glad we are able to continue the tradition of cooperation through meetings such as this.

The Internal Revenue Service will double - to 14 - the number of states participating in its test of Federal/State Electronic Filing next year. This is part of the continuing IRS effort to reduce the tax filing burden.

Five million employers will find it easier to know when to deposit the taxes withheld from employees' salaries under new regulations proposed by the Internal Revenue Service. As proposed, the new rules will take effect January 1, 1993.

The Spring 1992 issue of the Internal Revenue Service quarterly publication, the "Statistics of Income Bulletin" is now available. The new issue shows adjusted gross income reported on the 113.8 million individual income tax returns for 1990 was more than $3.4 trillion, an increase of 4.3 percent over 1989 preliminary estimates.

The Internal Revenue Service Information Reporting Program Advisory Committee will meet at the National Office; 1111 Constitution Avenue, N.W.; Washington, D.C. on Tuesday and Wednesday, May 19th and 20th. The meetings in Room 3313 will begin at 10:00 a.m. on both days, concluding about mid-day on the 20th.

The Internal Revenue Service Commissioner's Advisory Group will meet at the National Office; 1111 Constitution Avenue, N.W.; Washington, D.C.; on Wednesday and Thursday, April 22 and 23. The meetings in Room 3313 will begin at 8:30 a.m. on both days, concluding about mid-day on the 23rd.

The Internal Revenue Service warned people not to be fooled into thinking that failing to file a return can be the answer to their tax dilemma. Nonfilers who owe taxes face higher penalties, while those who fail to file for refunds could lose their right to the money.

The Internal Revenue Service today issued a notice announcing that final Treasury regulations on original issue discount will include rules relating to reopenings of Treasury securities in cases of acute and protracted shortages.

The Internal Revenue Service has already received half of the 114 million tax returns it expects this year. With April 15th just three weeks away, some of the remaining taxpayers may be thinking about getting more time to file. The IRS anticipates receiving five million extension requests, as it has the last two years.

The Internal Revenue Service today confirmed the award of the Treasury Multi user Acquisition Contract (TMAC) to AT&T. IRS awarded the $1.4 billion contract for computer equipment and services that will support tax systems modernization to AT&T in July 1991. The award was protested and returned to IRS for additional analysis and reconsideration.

The Internal Revenue Service today announced that interest rates for the calendar quarter beginning April 1, 1992, will decrease to seven percent for overpayments, eight percent for underpayments, and ten percent for large corporate underpayments.

Midway through the tax filing season, people are taking advantage of the options IRS offers to reduce taxpayer burden and improve service. More people are using easier filing methods, calling automated phone services and getting help from tax specialists.

More lower-income workers with children are benefiting from the Earned Income Credit (EIC), according to an Internal Revenue Service analysis of early tax returns. Changes in this tax credit have enabled more people to qualify for it and have made it more valuable for those who do.

The Winter 1991-1992 issue of the Internal Revenue Service quarterly publication, the "Statistics of Income Bulletin" is now available. It reports that on approximately 171,000 U.S. individual income tax returns for 1987 over $6.4 billion of net foreign income and "excess" housing expenses were excluded from gross income.

Businesses that pay federal unemployment tax (FUTA) on wages to employees in Michigan have until June 30, 1992 to pay any additional FUTA amount that is owed because of overdue unemployment insurance loans made by the federal government to the State of Michigan.

Over 23 million taxpayers got their tax questions answered last year by computers and recorded tapes, outpacing calls to live assistors. So far this filing season, calls to the IRS Tele-Tax system are up 50 percent, with over three million already handled.

This year the Internal Revenue Service is offering alternative ways for some taxpayers to file their tax returns. Even though it's still early in the filing season, filing by telephone -- Telefile -- is the most popular alternative so far.

The new withholding tables compensate for the fact that currently millions of Americans are overwithheld and end up giving the government an interest-free loan each year. This change will benefit low and middle income wage earners, increasing their take home pay by about $25 billion over the next twelve months.

The Internal Revenue Service will present "Taxbreak '92: Making Your Tax Preparation Easier" -- a full-hour of tax tips on preparing your 1991 tax return. The program will air on most public television stations on Sunday, February 2, 1992 at 2 p.m. EST.

Nonfilers--a growing problem While the number of tax returns filed has increased over the past few years-- 110 million in 1988 to 114 million in 1990-- the number of nonfilers has gone up, too. The IRS now estimates about 10 million individuals and businesses may not have filed. During 1991, the IRS inventories of apparently delinquent tax returns, representing one or more delinquent returns, increased by nearly 30 percent. The income tax gap attributable to nonfilers is over $7 billion annually.

The Internal Revenue Service's Ogden Service Center's winning of the President's Award for Quality represents only the third such award since the program began five years ago. While the award may be given each year, it has been given only twice before. Although two such awards can be given each year, the IRS service center is the only federal organization honored this year. The IRS is the first civilian federal organization to win the award, which is to federal organizations what the Malcolm Baldridge Award is to the private sector.

The Internal Revenue Service today announced cost-of-living adjustments applicable to dollar limitations on benefits under qualified defined benefit pension plans and to other provisions affecting such plans. Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under these plans.

Internal Revenue Service Commissioner Fred T. Goldberg has announced the appointment of the 1992 Commissioner's Advisory Group. Commissioner Goldberg appointed 15 new members to a two-year staggered term ending in 1993. Ten current members will serve their second year in 1992.

Day care providers who operate businesses in their homes will find it easier to file their federal income tax returns because of simplified recordkeeping rules under a ruling issued today by the Internal Revenue Service.

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